Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Considering cost as on 31/01/2018

692 views

Save Share

Join Us Follow Us Add as Source

Vishnu Vijay Shetty

Direct Tax Executive

10 Points Posted on 14 June 2024

Hi everyone,

Mr. A purchased mindtree shares at Rs. 5 20 years ago. Larsen & Toubro Info tookover Mindtree in Nov 2022 and allotted 73 shares of LTImindtree for every 100 shares of mindtree.

Now Mr. A sold LTI mindtree shares. While computing CG what FMV I should take as on 31^st January 2018 because now the shares sold is LTImindtree and when I purchased it was only Mindtree??

01. Should i consider mindtree Cost as on 31/01/2018 or,

02. L&T Infra Cost as on 31/01/2018 or

03. should i do some adjustment to get cost as on 31/01/2018?

plz suggest me ,

Thank you.

Replies (9)

Quick Summary

This discussion addresses a common Capital Gains Tax query for investors who held Mindtree shares before the LTIMindtree merger. The core issue is determining the correct cost basis as of 31st January 2018, when shares were originally purchased as Mindtree but later became LTIMindtree. Participants are seeking clarification on whether to use the original Mindtree cost, an adjusted LTIMindtree cost, or another method entirely for tax calculations.